1. Field of the Invention
The present invention relates to methods of advertising on behalf of third party businesses to potential customers. More particularly, the present invention pertains to display of advertising materials to potential customers wherein the display of advertising materials is coincident with the occurrence of a purchase transaction by the potential customer.
2. Prior Art
Consumer purchasing within the United States extends into the trillions of dollars annually. Much of this commercial activity is a by-product of massive advertising efforts whose annual cost reaches well into the high billions of dollars. Although much of the advertising expenditure is intended to educate the public on benefits of a given product or service, a major objective of advertising generally is to develop name recognition. A high level of name exposure tends to create a sense of security on the part of the consumer, favoring purchase of products bearing the familiar name as compared to similar products from a company without name recognition. Therefore, companies spend large sums of money simply to have their company or product name in high visibility before their potential customer base.
Although advertising is often viewed as a form of art expressed on billboards, radio and television commercials and printed promotions, statistical studies are developing a scientific aspect to evaluation of advertising materials. Indeed, billions of dollars are invested annually in studies for determining which factors are most persuasive with respect to specific product categories and particular consumer personalities. These studies confirm that certain colors, sounds, print styles, subject content, shapes, and numerous other elements can be selected to develop a more predictable response with respect to a statistical base of potential consumers. Even time of day can be a significant factor in optimizing mental and emotional receptivity with respect to certain products and services.
A significant influence on developing effective advertising is coordination of state of mind and awareness levels with timing of consumer exposure to company and product names. For example, audio and visual promotions are often played within a store where consumers are in a selection process for products under numerous brand names. The high level of awareness and attention of the mind when involved in the decision process enhances the susceptibility to direct and indirect influence of advertising messages. Therefore, an audio jingle or broadcast sale promotion tends to sway purchasing decisions when the consumer is involved in the decision process. Aisle advertising is very popular because it places promotion materials directly in front of the customer at the very point of making a purchase decision.
Other circumstances also tend to stimulate increased consumer attention to product source and identity issues. For example, point of purchase and cash register display advertising catches a consumer when they are in the very act of paying for a product or service. At this stage, the customer has made a purchase decision, including selection of a specific brand or company product. The act of payment operates to place value on the decision (including the company name or brand), and is typically reinforcing a frame of mind in which the consumer is reviewing the benefits of the purchase. It naturally follows that the point of purchase enhances sensitivity to advertising influence. This higher level of awareness would apply whether cash or a credit card is exchanged to consummate the purchase transaction. The point of purchase is therefore an ideal advertising opportunity which arises at the very point of payment for a product or service. Advertising in this circumstance has been limited, however, because the practicality of placing advertising on currency or accessing the customer's private credit or debit cards as a general advertising medium has been unavailable.
This is not to say that the value of name recognition on a credit card has been unappreciated. Visa, Master Card and Discovery are internationally recognized credit card systems. Indeed, the total dollar volume for credit transactions using credit and debit cards exceeded 1.5 trillion dollars in 1997. This doesn't include cash cards, smart cards, gas cards, phone cards and numerous other financial transaction cards that can be used as a substitute for cash payment in a purchase transaction. Consumer sensitivity to brand names on such credit cards is high because each use of the card requires identification of the supporting system--Visa, MasterCard, Discovery, etc. Competition among these systems has also led to high cost competitive advertising in this financial arena. By sharing revenues with other organizations and businesses, co-branding activities have led to credit cards bearing trademarks of other companies having an apparent capacity as a credit card sponsor or supplier. Even charitable organizations have participated in use of co-branded cards which bear the name of the organization.
Nevertheless, such cards for use as cash substitutes in financial transactions (referred to hereafter as "financial transaction cards") have not been used as a medium for carrying general advertising materials. Company name and brand recognition has been limited to identification of the supplying organization of the cards, as opposed to third party business--meaning businesses that have no ownership or supply function with respect to the card. Therefore, the perception of company names on financial transaction cards remains one of supplier identification as with any product or service, and not one of general advertising.
The use of financial transaction cards has become commonplace in virtually every aspect of consumerism. This liberal use has been fostered by a general acceptance of credit shopping as a way of life. It is clear that casual use of credit cards has promoted excessive debt load because typical consumers do not maintain an accurate account of credit card expenses. Most users simply rely on a monthly billing summary from the credit card supplier.
U.S. Pat. No. 4,643,455 represents a solution developed by one of the present inventors for recording transactions using such financial transaction cards. It comprised a transaction recording card which can be attached directly to the credit card. As a purchase is made, the purchasing party removes the recording card and enters transaction data associated with the purchase. Regular use of this device enables a consumer to maintain an on-going balance and thereby curb excessive spending. With the advent of debit cards which operate against a cash balance, such monitoring of purchases becomes even more significant.
Despite growing credit/debit card use over the past decade since issuance of the referenced patent, the present inventors are aware of no device which has been commercially marketed for attachment to the card for maintaining an active record of financial transactions. Those skilled in the art have relied on computer software or a checkbook register maintained separate from the credit/debit card to keep any record of purchases. The traditional paradigm of the credit/debit card performing a single function for financial transactions, without other forms of commercial advantage, continues to dominate related technology. Specifically, the development of a transaction recording device for use with credit/debit cards has provided no assistance to enhancement of current advertising methods. Indeed, the phenomenal surge of credit/debit card use over the past twenty years has failed to develop a perception that financial transaction cards such as credit or debit cards offer an advertising medium or opportunity for third party businesses.